BYD beats Tesla: How China is challenging Elon Musk's global dominance in EV market

File Image

In a significant milestone within the electric vehicle (EV) industry, Chinese automaker BYD has reported annual revenues exceeding USD 107 billion for 2024, surpassing Tesla's USD 97.7 billion for the same period. BYD’s achievement is not just a corporate success story, but also a significant marker in the global shift of automotive power, deeply intertwined in China’s strategic ambitions in the EV sector.

BYD’s financial filing, which was released on Monday, reported a 34 per cent increase in net profit year-over-year, rising to USD 5.56 billion — well above analyst forecasts.

The company sold approximately 4.27 million vehicles in 2024, nearly doubling Tesla's 1.79 million units. This total includes both fully electric and hybrid models, highlighting BYD's diversified approach in the EV market.

Let’s take a look at some of the factors behind BYD’s success as it continues to expand its presence in international markets.

1. Home-field advantage: China is arguably the world’s largest EV market and its government has long identified the EV industry as a strategic sector, providing significant support through subsidies, tax breaks and infrastructure development. This has created a fertile ground for domestic companies like BYD to thrive.

Notably, BYD doesn’t sell passenger cars in the US yet due to punitive tariffs on made-in-China automobiles, but it has made big inroads into markets in Europe, places in Asia such as Singapore and Thailand, as well as Australia.

2. Technological innovations and product offerings: A key factor in BYD's success is its commitment to innovation. The company has introduced a next-generation charging system capable of delivering 232 miles of range in just five minutes, significantly enhancing the convenience of EV ownership.

Earlier this week, BYD launched the Qin L (sedan), priced at 11,800 yuan (USD 16,517). In contrast, the basic edition of Tesla’s Model 3 in China is priced at 2,35,500 yuan, i.e. more than double the price of BYD’s latest offering. Interestingly, despite the price different, Qin L offers a competitive driving range of 545 km against Model 3’s 634 km.

3. Tesla’s position and outlook: While Tesla remains a formidable player in the EV sector, it faces headwinds including declining sales in certain regions, intensified competition, and reputational challenges linked to CEO Elon Musk's political engagements. In response, Tesla is focusing on advancements in autonomous driving technology and exploring new market opportunities to regain its competitive edge.

4. Global sales difference: BYD reported selling 322,846 cars in February 2025, up 164 per cent on last year. According to news agency AFP, its monthly sales jumped 161 per cent in February to 318,000 units. Meanwhile, Tesla’s shipments from China dropped 49 per cent in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022.

On a broader level, Tesla’s market share in China has dropped from more than 16 per cent of the market in 2022 to 4.3 per cent in February 2025.

5. Global expansion as a national strategy: BYD's aggressive global expansion, particularly in emerging markets, can be seen as part of China's broader strategy to increase its economic and technological influence. • China's control over the EV supply chain provides it with a significant advantage in terms of resilience and cost-effectiveness.